What accounting standard does Itan follow for private companies with respect to entities under common control?

According to Itan's 2025 Franchise Disclosure Document, the company adheres to a specific accounting standard for private companies concerning entities under common control. Itan follows the alternative accounting standard for private companies when dealing with entities under common control. This means that these entities are not evaluated under the variable interest subsections of the Financial Accounting Standards Board ("FASB") ASC 810.

In simpler terms, this accounting choice affects how Itan consolidates or accounts for businesses that are owned or controlled by the same individuals or parent company. Rather than using the standard FASB ASC 810 guidelines, Itan uses an alternative method. This alternative method might provide some simplification or different reporting outcomes compared to the standard approach.

For a prospective franchisee, this information is relevant because it provides insight into Itan's financial reporting practices. While the specific details of the alternative accounting standard are not provided, it's important to recognize that Itan's financial statements are prepared using this method, which could influence how the company's financial performance and position are presented. A potential franchisee might want to inquire further about the implications of this accounting choice and how it might affect their understanding of Itan's financial health and stability.